How does an imprest account help to improve control over cash?
All Answers
total answers (1)
total answers (1)
Accounting
- An imprest bank account contains a stipulated amount of money, and the account is used for limited purposes.
- Imprest accounts are frequently used for disbursing payroll and dividend checks.
- An imprest account serves as a clearing account for similar types of checks.
- By separating similar types of checks, the entity facilitates the disbursement of cash while maintaining adequate control over cash.
- Use of imprest accounts also minimizes the time necessary to reconcile the general cash account.
need an explanation for this answer? contact us directly to get an explanation for this answer